CoStar has dropped its acquisition bid for real estate data firm CoreLogic. The news comes just days after CoreLogic rejected a modified proposal that added $450 million in cash to a previous all-share bid.

Rising interest rates have eroded valuations for residential property technology companies in recent weeks, making the CoreLogic acquisition less attractive, CoStar explained in an announcement.

“With interest rates moving up, now is not the time for us to aggressively buy into the residential mortgage market,” CoStar founder and CEO Andrew Florance stated. 

CoStar had been pursuing the deal for several months, and improved its offer multiple times after CoreLogic accepted a competing $6 billion cash bid from investment firms Stone Point Capital and Insight Partners early last month.

On Wednesday, CoreLogic rejected a CoStar offer that would have added cash to an earlier all-share bid.

Initially valued at $6.9 billion, CoStar’s stock offer lost value in the ensuing weeks as the company’s share price sunk dramatically. The added cash did not make up for the loss, and CoreLogic said Wednesday that it wanted a deal that included “as much cash consideration as possible.”

CoreLogic said it was also concerned the deal would run into antitrust hurdles, and wasn’t satisfied with CoStar’s assurances that it wouldn’t.

Florance apparently thought CoreLogic was getting greedy.

In an announcement Wednesday afternoon, he wrote “CoreLogic is an excellent company with a talented team” but that CoStar “is committed, however, to maintaining its disciplined approach to valuation as it pursues strategic acquisitions.”

“We wish to congratulate Stone Point and Insight Partners on their successful bid to acquire CoreLogic,” Florance added.

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